(a) “ t h e A c t ” me a n s t h e P u n ja b C o - o p e r a t i v e S o c ie t i e s A c t , 1 9 6 1 ;
(b) “ a p p e n d i x ” m e a n s a n a p p e n d i x t o t h e s e r u l e s ;
(c) “ c o - o p e r a t iv e ye a r ” me a n s t h e ye a r e n d i n g w i t h t h e 3 0 t h d a y o f J u n e , o r i n t h e c a s e o f a n y c o - o p e r a t i v e s o c i e t y o r c l a s s o f c o - o p er a t ive s o c ie t ie s , t he a c co u nt s o f w h ic h a r e ma d e u p t o a ny o t he r d a t e , w i t h t he p r e v io u s s a nc t i o n o f t he R e g i s t r a r , t he ye a r ending with such date ;
(d) “d ecr ee” me a ns a ny o r der , dec is io n o r awar d r e fe r r ed to in sec t io n 63 of the Act ;
(e) “d e c r e e ho ld e r ” me a ns a n y p e r s o n \ ho ld ing a d e c r e e a s d e f ine d i r \ clause (d) ;
(f) “ m a x i m u m c r e d i t l i m i t ” m e a n s t h e e x t e n t t o w h i c h a co - o per at ive so c ie t y ma y r ece ive dep o s it s and lo a ns fr o m me mbe r s and non-members ;
(g) “ mo d e l b ye - la w s ” me a n s a s e t o f b ye - la w s a p pr o ve d a nd p r o po s e d b y t h e R e g i s t r a r fo r g e ne r a l a d o p t io n b y a c l a s s o f c o - o p e r a t ive societies ;
(h) “ o w n e d c a p i t a l ” m e a n s t h e t o t a l p a i d u p s h a r e c a p i t a l a n d r e s e r v e f u n d a n d o t h e r f u n d s c r e a t e d o u t o f p r o f i t s a n d u n d i s t r i b u t e d p r o f i t s m i n u s a c c u m u l a t e d l o s s e s ;
(i) “ p a i d u p s h a r e c a p i t a l ” m e a n s s u c h p o r t i o n o f t h e s u b s c r i b e d share capital as is actually paid up ;
(j) “ R e c o v e r y O f f i c e r ” me a n s a p e r s o n s u b o r d in a t e t o t he R e g i s t r a r w h o i s e m p o w e r e d t o e x e r c i s e i n a d i s t r i c t , t h e p o w e r o f t h e Registrar under section 63 of the Act ;
(k) “ r e l a t i v e ” i n c lu d e s a n y o n e r e l a t e d t o t he p e r s o n c o n c e r n e d , h i s w i f e , h i s s o n / d a u g h t e r o r h i s s o n ’ s w i f e o r d a u g h t e r ’ s h u s b a n d t h r o u g h a co mmo n a nc e s t o r , no t mo r e r e mo t e t ha n a g r a nd f a t he r or any one married to a person so related ;
(l) “ r e s e r v e f u n d ” me a n s a f u n d t o w h i c h a t l e a s t o n e t e n t h o f t h e n e t p r o f i t s o f c o - o p e r a t iv e s o c i e t y i n a n y y e a r s h a l l b e c a r r i e d as required by section 41 of the act ;
(m) “ S a l e O f f i c e r ” m e a n s a n o f f i c e r e m p o w e r e d b y t h e R e g i s t r a r b y g e n e r a l o r s p e c i a l o r d e r , t o a t t a c h a n d s e l l t h e p r o p e r t y o f d e f a u l t e r s o r t o e x e c u t e a n y d e c r e e b y a t t a c h m e n t a n d s a l e o f property ;
(n) “section” means a section of the Act ;
(o) “ s h a r e c a p i t a l ” m e a n s t h e s u b s c r i b e d s h a r e c a p i t a l ;
(p) “ w o r k i n g c a p i t a l ” m e a n s t h e t o t a l o f o w n e d c a p i t a l p l u s t h e borrowed capital ;
(q) “words and express io n de f ined in t he Act and used in t he ru les sha l l h a v e t h e m e a n i n g s , r e s p e c t i v e l y a s s i g n e d t o t h e m i n t h e A c t .
CHAPTER II REGISTRATION OF CO-OPERATIVE SOCIETIES AND THEIR BYE-LAWS APPLICATION FOR REGISTRATION Section 85(2) 3. Form of application:-An applicat ion for registration of a co-operative
(ii) Society shall be made in the form given in Appendix A and shall specify the name and address of one of the applicants to whom the Registrar may address his correspondence under rules 5 (2) and 6.
Section 85(2) 4. Documents which shall accompany the application:-The application for
(ii) regist rat ion shall be accompanied by three copies of bye- laws which the Co-operative Society proposes to adopt. Such copies of by-laws shall bear the signatures of not less than two of the applicants, duly authorised by the members of the proposed co-operative society.
Section 85 (2) 5. Procedure on receipt of applicat ion:-(1) Before passing final orders
(ii) under section 8, the Registrar may call for such further information from the applicants or make such independent enquiries as he may deem necessary.
(2) After the Registrar is sat isfied with regard to the matters stated in Sub-section (1) of section 8, he may register the co-operative society and its bye-laws. A Copy of the registered bye-laws shall be returned by him to the co-operative society.
Section 8 (2) 6. Person to whom order under section 8 (2) to be communicated :-The Order passed by the Registrar under sub-section (2) of section (2) of section 8 shall be Communicated by registered post to the applicant referred to in ru le 3.
Section 85 (2) 7. Appea l aga inst refusa l o f reg ist rat ion:- Where an app l icat io n fo r
(xxvii) registration of a co-operative society is rejected by the Registrar, the appeal, if made, sha ll be s igned by a ll t he persons jo ining in t he applicat ion fo r registration.
Section 85 (2) 8. Subject matter of bye-laws:- A co-operative society shall make
(iv) bye-laws in respect of the following matters:-
(a) name and address of the co-operative society.
(b) area of operation ;
(c) the objects for which the co-operative society is established ;
(d) the manner in which the funds may be raised ;
(e) the qualifications for membership and the terms of admission members ;
(f) the nature and the extent of the liability of the members ;
(g) withdrawal and expulsion of members, and the payments, if any, to be made to such members ;
(h) transfer of shares or interests of the members ;
(i) general meeting and type procedure and powers of such meeting ;
(j) appointment, suspension and removal of the officers of co-operative society and members of the committee ;
(k) constitution of the committee and procedure of holding its meting ;
(l) powers and duties of the committee and the officers of co-operative society ;
(m) disposal of profits ;
Provided that is in the opinion of the Registrar the bye- laws of any co-operat ive society do not contain provisions with regard to the matters specified in clauses (i) and (k) or contain insufficient provision with regard to these matters, the provisions specified in Appendix B shall apply to such society as if these had been a part of the bye-laws registered under section 8 ;
Provided further that if there is any inconsistency in the bye-laws framed by the society with regard to the aforesaid matters and the provisions contained in Appendix B, the bye-laws of the society shall prevail in so for as they are inconsistent with the provisions contained in Appendix B.
(2) The bye-laws of co-operat ive society may further provide for such matters as are incidental to the organization of the society and the management of its business.
Section 85(2) 9. Amendment of bye-laws:-Subject to the provisions of section 10 and ( i v ) r u l e 8 a s o c i e t y m a y f r o m t i m e t o t i m e a m e n d i t s b y e - l a w s .
Section 85 10. Resolut ion for amendment:-No amendment under rule 9 shall be
(2) (iv) carried out save in accordance with a resolution passed at a general meeting of the co-operative society of which due notice of the intention to discus the amendments has been given :
Provided that no such resolution shall be valid unless it is passed by a majority of members present at the general meeting at which not less than two third of members for the time being of the co-operative society are present :
Provided further that model bye-laws for amendments previously approved by the Registrar may be adopted by a majority at an ordinary general meeting.
Section 85 11. Application to Registrar for registration of amendment:-Three copies
(2) (iv) of the amendments adopted by the co-operative society under rule 10, signed by two officers of the co-operative society duly authorised by the general meeting in this behalf, shall be submitted to the Registrar alongwith an applicat ion for registration duly signed as aforesaid. Such copies of the amendments shall be accompanied by a certificate signed by any one of the above two officers of the co-operative society to the effect that the provisions of rule 10 have been complied with.
Section 10 12. Registrat ion of amendment:-(1) After the Registrar is sat isfied
(4) and 85(2) with regard to the matters stated in sub-section (2) of section 10, he may register
(iv) the amendment s and return a copy o f t he reg istered amendment s to the co-operative society.
(2) The order of the Registrar passed under sub-section (4) of section 10 shall be communicated by registered post to the co-operat ive society.
Section 85
(2) (xxvii) 13. Appeal against refusal to register amendments to bye-laws:-Where an application for registration of an amendment in bye-laws of a co-operative society is rejected by the Registrar under sub-sect ion (4) of sect ion 10, the appeal, if any, shall be made only after a meet ing of the general body has reconsidered the matter and has decided to prefer an appeal and shall be signed by an officer of the co-operative society duly authorised in this behalf by a general meeting.
CHAPTER III MEMBERS OF CO-OPERATIVE SOCIETY, THEIR RIGHTS AND LIABILITIES Section 85 14. Disqualification for membership:-(i) No person shall be eligible
(2) (v) and for admission as a member of a co-operative society, if he-
(xix)
(a) has applied to be adjudicated an insolvent or is an un discharged insolvent ; or
(b) he has been sentenced for any offence, other than an offence of a political character or an offence not involving moral turpitude and a period of five years has not elapsed from the date of expiry of the sentence.
(2) If a member becomes subject to any of the disqualificat ions Specified in sub rule (1), he shall be deemed to have ceased to be a member From the date when the disqualification was incurred.
Section 85 15. (1) Prohibit ion of membership in two Co-operative Credit or
(2) (v) and Service Societ ies-No individual, being a member of a primary co-operative 85 (2) (xix) society having one of the object the creation of the funds to be lent to its members, shall be a member of any other such co-operative society without the general or special permission of the Registrar, and where an individual has become a member of two such co-operative societies, either or both of the co-operative societies shall be bound to remove him from membership upon a written requisition from the Registrar to that effect.
(2) No individual who is an officer of any co-operative society shall, without the general or a special permission of the Registrar; be a member of any other co-operative society whose objects are similar to the objects of the society of which he is an officer ; and where such an individual has become a member o f another soc iety with simila r objects, eit her or both of the co-operative societies shall be bound to remove him from membership upon written requisition from the Registrar to effect. If any question arises as to whether or not two societies have similar objects the decision of the Registrar on the point shall be final.
Section 85 16. Admission of member before general meet ing of co-operat ive
(2) (v) society-No co-operat ive society shall admit members within fourteen days prior to the date of its annual general meeting.
Section 85 17. Disposal of application for admission of member-A co-operative
(2) (v) society, other than a producers society, shall dispose of an application received for admission as a member as early as possible and in no case latter than the expiration of a period of one month from the date of receipt of the application by the society. In case of refusal to admit, such society shall communicate its decision, together with reason thereof, to the applicant.
Section 85 18. (1) Withdrawal from membership-In a co-operative society with
(2) (xix) unlimited liability, a member who is not indebted to a co-operative society and is not a surely for an unpaid debt, may withdraw from the co-operative society after giving such notice to the Secretary of the society as may be laid down in the bye-laws.
(2) In a co-operative society with unlimited liability, a member, who withdraws or is otherwise removed or expelled from the society, shall be entitled to repayment without interest of any money paid by him or his predecessor in interest towards the purchase of shares after such period as may be laid down in the bye-laws.
(3) No member of a co-operative society with limited liability shall o rd ina r i ly be pe r mit t ed t o seek wit hdrawal o r r e fund o f h is sha r es :
Provided that where the society has created a share-transfer fund out of is earned profits, its managing committee may, keeping in view the over-all interests of the society, allow withdrawal of shares :
Provided further that such withdrawal of shares at any time shall not exceed five percent of the aggregate paid up share capital of the society, excluding Government contribut ions, as it stood on the 30th June, of the preceding year ;
(4) Irrespective of the nature of liability of a Co-operative Society, the share capital subscribed by the State Government in a Co-operative Society or by a Central or Apex Co-operative Financing Institution will be retired in such a manner and during such period as may be determined by the Registrar from time to time.
Section 85 19. (1) Nomination of heir:-Every member of a Co-operative Society
(2) (xx) shall nominate a person or persons to whom his share or interest referred to in section 21 or such sums out of share or interest as may be specified by the member, shall, on the death of the member, be transferred or paid as laid down in the bye-laws.
(2) Such nomination may, from time to time, be revoked or modified by the member.
(3) The number of persons who may be nominated by member shall not exceed the number of shares held by the member.
(4) When a member of a Co-operative Society nominates more than one person, he shall as far as practicable, specify the amount to be paid or transferred to each nominee in terms of whole share and the interest accruing thereon.
(5) The record of nomination shall be kept by a Co-operative society in such manner as may be laid down in the by-laws.
(6) The value of the share or interest transferred or paid to a nominee or nominees shall be determined on the basis of the sum actually paid by the member to acquire such share or interest, unless the bye-laws provide for calculation on a different basis.
Section 85 20. Maintenance of register of members:-Every Co-operative society
(2) (xvi) shall maintain a register of members showing:-
(a) the name, address and occupation of each member, and a statement shares held by him ;
(b) the date on which the member’s name was entered in the’ register ;
(c) the date on which any person ceased to be a member ;
(d) the nominees appointed by a member.
Section 6 21. Restrict ions on holding of shares:-No member other than the and 85 (2) Government or a Co-operative Society shall hold more than one fifth of the
(i) share capital of a Co-operative Society or have or claim any interest in the shares of the society exceeding ten thousand rupees, whichever is lesser.
CHAPTER IV GENERAL MEETINGS Section 85 22. Powers of general meeting:-Without prejudice to the provisions of
(2) (vii) and sect ion 24, the general meet ing alone shall have the power to transact the
(x) following business:-
(a) fixing the maximum credit limit of the Co-operative Society s u b j e c t t o t h e a p p r o v a l o f t h e R e g i s t r a r ;
(b) election, suspension and removal of the members of the c o m m i t t e e o t h e r t h a n t h e n o m i n a t e d me m b e r s :
Provided that an interim vacancy of the committee may be filled by co -opt ion by the remaining members o f t he commit tee t ill t he elect ion is held ;
(c) expulsion of the members.
Section 26 23. Elect ion o f commit tee:-The members o f the commit tee o f a
(i) Co-operative Society shall be elected in accordance with the rules given in Appendix C.
Section 85 24. Proportion of individuals and societies for constituting committee:-
(2) (ix) In a Co-operative Society, the membership of which is not exclusively confined to individuals, the representation of individuals and societies on the committee and the general body shall be such as may be laid down in the bye-laws of the Co-operative Society.
Section 85 25. Disqualification for membership of committee:- No person shall be
(2) (xii) and eligible for election as a member of a committee if :-
(xxxvii)
(a) he is in default to any Co-operative Society in respect of any sum due from him to the society or owes to any Co-operative Society a n a m o u n t e x c e e d i n g h i s m a x i m u m c r e d i t l i m i t ;
(b) he has , direct ly or indirect ly, any interest in any contract to which the Co-operative Society is a party except in transactions made with the Co-operative Society as a member in accordance w it h t he o b jec t o f t he so c ie t y a s s t a t ed in t he bye- la ws
(c) he has at any time during a period of one year prior to the date o f scrut iny o f no minat io n paper s, engaged in any pr ivat e business, trade or profession of any description which is carried on by the society ;
(d) he has commit ted any offence invo lving dishonesty or moral turpitude dur ing a per iod o f five years pr ior to t he date o f scrutiny of nomination papers ;
(e) he is subject to any of the prohibitions contained in rule 26 ;
(f) he has, dur ing a per iod of 12 months preceding the date of filing of nominat ion papers, remained inact ive as member or ha s be e n c a r r y in g o n , t h r o u g h a g e nc ie s o t he r t ha n t he Co-operative Society of which he is a member, the same business A s i s b e i n g c a r r i e d o n b y t h e C o - o p e r a t iv e S o c ie t y ;
(g) he is a member of any Co-operative Society which has ceased to funct ion or which has not fulfilled its objects as stated in its bye-laws and has been included in the list of D Class societies maintained by the Registrar or is a member of a society which is under winding up process :
Provided that nothing in this clause shall be deemed to debar any person from seeking elect ion if the society under winding up process of which he is a member is a society with limited liability and the registration of the society is not cancelled within a period of one year of the date of passing of an order under section 57 l ia b i l it y as su r e t y i f a ny, in r e la t io n to such a so c ie t y ;
(h) he incure any other disqualification laid down in the bye-laws of the society ;
Section 85 26. Cessation of membership of committee:-A member of the committee
(2) (x) shall cease to hold his office as such if he-
(a) continues to be in default in respect of any sum due from him to the Co-operative Society for such period as may be laid down in the bye-laws ;
(b) ceases to be a member ;
(c) is declared insolvent ;
(d) becomes of unsound mind ;
(e) is convicted of an offence involving dishonesty or moral turpitude ; or
(f) beco mes subject to any d isqua l if icat ion which wou ld have prevented him from seek ing e lect ion, had he incurred that disqualification before election.